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These 3 Canadian Dividend Stocks Are a Pensioner’s Best Friend

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Written by Jed Lloren at The Motley Fool Canada

As a pensioner, your income is likely already determined. Depending on how much you’re given, that could allow you to live a comfortable life in retirement, but perhaps not the life you wish you could live. That’s why it’s a good idea to bolster that income via the stock market. One way to do so is by investing in dividend stocks. In this article, I’ll discuss three Canadian dividend stocks that could be a pensioner’s best friend.

Start with this dividend stock

When looking for dividend stocks, in my opinion, one of the first companies you should always think of is Fortis (TSX:FTS). This company provides regulated gas and electric utilities to more than three million customers across North America. Generally, utilities are paid by customers on a monthly basis. That provides companies such as Fortis with a very stable and predictable source of revenue. Using that advantage, Fortis is able to plan dividend distributions much ahead of time.

We can see that Fortis has done an excellent job with that over the years. In fact, the company has maintained a 49-year dividend-growth streak. That’s the second-longest streak of its kind in Canada. Fortis has already announced its plans to continue growing its dividend through to 2027 at a rate of 4-6%. If you’re interested in just one dividend stock for your portfolio, don’t pass on Fortis.

Another Canadian Dividend Aristocrat for your portfolio

Canadian National Railway (TSX:CNR) is the second Canadian dividend stock that pensioners should consider investing in. This may be one of the most recognizable companies in Canada. Canadian National Railway operates a railway network which spans from British Columbia to Nova Scotia. The company also operates as far south as Louisiana (in the United States). Altogether, Canadian National Railway operates nearly 33,000 km of track.

In Canada, the best dividend stocks are given the title of Canadian Dividend Aristocrat. In order to qualify, companies need to increase their dividend distribution for at least five consecutive years. Canadian National Railway blows that minimum requirement out of the water with its 26-year dividend-growth streak. It’s currently one of only 11 TSX-listed companies to maintain a streak that long.

Don’t sleep on this top stock

Finally, pensioners should consider buying shares of Bank of Nova Scotia (TSX:BNS). This is a company that doesn’t really need much introduction. Bank of Nova Scotia is one of the Big Five Canadian banks. What makes it stand out, in my opinion, is its dedication to international growth — particularly, its presence in the Pacific Alliance. That’s a region which includes the countries of Chile, Columbia, Mexico, and Peru. It’s predicted that the region could experience much faster growth than Canada and the U.S. over the coming years.

Although Bank of Nova Scotia doesn’t boast the same kind of dividend-growth streak as the two aforementioned companies, this is still a great dividend stock in its own right. The company first paid shareholders a dividend in 1833. Since then, it has never missed a dividend distribution. That represents 190 years of continued dividend distributions.

The post These 3 Canadian Dividend Stocks Are a Pensioner’s Best Friend appeared first on The Motley Fool Canada.

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Fool contributor Jed Lloren has positions in Bank Of Nova Scotia and Fortis. The Motley Fool recommends Bank Of Nova Scotia, Canadian National Railway, and Fortis. The Motley Fool has a disclosure policy.